$1M a year isn't a lot of money if you are paying for full-time employees.
This was after they laid everyone off, so it was just Adam and Steve left. An they surpassed $2M a year in sponsorships a couple of months after that. They were not struggling for cash at all.
Right, and as a consequence lots of very important software (orders of magnitude more important than tailwind) does not have full-time employees. Good for them if they can manage it, but it's a gravy train.
They achieved $2 million revenue in the first 5 months of the first Tailwind UI release.[1]
They had a very good run for such a project.
[1] - https://adamwathan.me/tailwindcss-from-side-project-byproduc...